Whitbread Share Discussion Threads

[bountyhunter] 10/9/2018 19:51

BC, the market cap is 8.5m so if they returned say 3m that would be 6/17 * share price pence per share as a rough approximation.
They may of course issue redeemable B shares instead as a more tax efficient measure.

[zipstuck] 10/9/2018 18:06

Always the chance that Premier will be sold if not euro expansion of brand

[beercapafn] 07/9/2018 16:09

Bounty hunter.

Any idea what that is worth as a Special Div.

[bountyhunter] 07/9/2018 15:41

Shore Capital Markets on Friday said it expects Whitbread PLC to return GBP3.2 billion to shareholders after completing the sale of Costa

[bountyhunter] 02/9/2018 21:01

I agree about Germany rimau1 - when I was there (although that was some years ago now) budget hotels seemed to be non-existent.

[rimau1] 02/9/2018 19:49

I’m actually very positive about Premier Inn as a structural growth story. In the UK we should be benefiting from increased tourism due to contined Sterling weakening and to a lesser degree staycations, whilst Germany is massively underserved by discount/budget rooms. Premier Inn would make a great acquisition for a global hotel chain. I will be buying more WTB on any weakness or profit taking.

[bountyhunter] 02/9/2018 10:33

Great idea Danny, that would fit in well with the Premier Inn brand and personally I prefer Starbucks coffee anyway!

[danny baker] 02/9/2018 10:29

While attention has focused on the great price achieved for Costa Coffee the remaining Premier Inn business actually looks quite dull. Rather like the UK coffee shop market, the 2/3 star UK hotel market can't be that far away from saturation. I was thinking what should Whitbread management do to make it a more interesting growth stock. My view is they should buy Village Hotels from the US venture capital group KSL Partners and rebrand it as Premier Village. Village hotels are a step up in room quality from Premier but they also have health clubs, swimming pools, pubs and restaurants and achieve higher room rates. I can see significant benefits from cross-marketing and upselling. Most Village hotels also have an in-house Starbucks!

[bountyhunter] 31/8/2018 19:35

Absolutely DB! Coke have global reach already so who better to further expand the Costa chain.

[danny baker] 31/8/2018 18:22

I don't think Whitbread had the appetite for the geographical expansion that Coca-Cola thrive on. Starbucks has made great strides to build its brand in places such as Thailand and Vietnam. Costa opened a shop in Thailand in 2013 then permanently closed it. Cost opened in Da Nang in Vietnam but so far as I know haven't opened in Ho Chi Minh City. Vietnam is one of the world's biggest coffee drinking countries. To be a global coffee brand you really need to be represented there. It's a great price and a great deal for both sides.

[bountyhunter] 31/8/2018 16:06

"Sources familiar with the situation said Elliott now plans to push Whitbread to consider strategic options for Premier Inn, which is valued at a discount to global hotel chain peers.

"Premier Inn should not exist as a standalone company in our view, and should be swallowed up by the likes of IHG, Marriott or Accor, operating in concert with a property investor to split the property from operations," said analysts at Canaccord Genuity in a research note.

Whitbread shares at 1251 GMT were up 665 pence at 4,685 pence, having peaked at 4,800 pence earlier in the session.

Whitbread bought Costa in 1995 for GBP19 million, when it only had 39 shops. It now has over 2,400 coffee shops in the U.K. and over 1,400 stores in more than 30 international markets. Costa generated revenue of GBP1.29 billion in its latest fiscal year which ended on March 1."

[bountyhunter] 31/8/2018 13:54

Costa has not come cheap. Analysts at UBS had previously valued Costa at around £2.7bn, but the £3.9bn price tag values Costa at a significantly higher multiple (16.4x Costa’s 2018 full year EBITDA) than Starbucks, which trades at an enterprise value of around 13x EBITDA.

“We think the achieved multiple will be materially beyond the market’s expectations,” UBS concludes.

[bountyhunter] 31/8/2018 13:51

"Whitbread Chief Executive Alison Brittain said that Coke wasn't the only interested party, but suggested that the U.S. drinks giant's global reach allowed it to offer the most attractive deal. The agreement, expected to be completed in the first half of 2019, was signed only eight minutes before it was announced early Friday."

from update 4

[suetballs] 31/8/2018 13:11

Sold out first thing this am for a very decent profit.
Been a shareholder for many a year.
Good luck remaining holders.
Suet

[dime] 31/8/2018 09:28

I've been holding for a while and felt confident that expansion and good growth in China market would underpin future.

[bountyhunter] 31/8/2018 09:04

This is a great deal for Whitbread allowing Whitbread to focus on what they do best and expand the Premier Inn brand overseas and exit a saturated coffee market at a decent price. It's also probably not a bad deal for Coke given it fits in nicely with their existing business (unlike hotels!).
For the first time since AB took over I'm very happy to say a cheerful well done to the BoD!

[croasdalelfc] 31/8/2018 08:45

Analysts meeting at 9 then a rise to 48:49

[rimau1] 31/8/2018 08:38

Costa has no sales growth, 16 times earnings is punchy for no growth

[chiefbrody] 31/8/2018 08:35

Yup. As others have said. Another sell out to the Americans.Usual short sightedness. Sigh.

[ntv] 31/8/2018 08:33

only 16.4 times earnings for a leading brand
CC snap up another bargin

[dingo75] 31/8/2018 08:12

WTB must be laughing hard at being able to sell this asset for £3.9B.

Coke must be desperate to hit their growth figures...

well done WTB. keep up the stellar work.

[rimau1] 31/8/2018 08:06

That is an understatement bountyhunter, its an amazing deal, the share price will rise and some. We were looking at unlocking £2.3bn of value demerging, we have £3.9bn, i estimate sum of the parts to be north of £50 now, if this is under £45 at opening i will double my holding before the analysts scribble away at the updated valuations. What a deal, well done Board.